The 2014 Stock Market: What the Charts Say

The market's momentum should carry into early next year. But will the inevitable correction be shallow or deep?

The simple strategy of identifying the major trend and then holding on through the bumps paid off handsomely in 2013. With just one day of trading left, the broad market is sitting on a total return north of 30%. But all good things do eventually come to an end. By the look of the trend it is hard to think that end is immediately upon us. Later in 2014, however, may be a different story.

Indeed, even several technical issues – lagging small stocks and deteriorating market breadth, for instance – have been resolved. The...